Oil Sector Unions Reject FG Plan to Sell JV Oil Assets

Two major oil sector unions in Nigeria—the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG)—have firmly rejected the Federal Government’s plan to divest up to 30-35 percent stakes in joint venture (JV) oil and gas assets managed by the Nigerian National Petroleum Company Limited (NNPCL). The unions warned that such divestments could destabilize the national economy, weaken the oil industry, and jeopardize workers’ welfare.

At a joint press briefing in Abuja, union leaders Festus Osifo (PENGASSAN) and Williams Akporeha (NUPENG) asserted that the government’s stake, currently between 55 and 60 percent, should not be reduced for short-term financial gains. Osifo said, “You cannot mortgage the future of Nigerians for temporary gains.” They cautioned that this move risks bankrupting NNPCL, impairing its ability to meet salary and welfare obligations, and shrinking its contributions to the national budget.

The unions expressed concern that efforts to amend the Petroleum Industry Act (PIA), enacted just three years ago, might disrupt the growing stability and investor confidence in Nigeria’s oil sector. They also criticized a perceived attempt by the Ministry of Finance to wrest control from the Ministry of Petroleum over NNPCL’s operations, calling it a “backdoor hijack” that could scare away investors.

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Recalling previous divestments by international oil firms like ENI’s Agip, ExxonMobil, and Shell, the unions warned that similar moves weaken national oil companies, leaving them incapable of safeguarding Nigeria’s oil wealth. Both unions urged President Bola Tinubu to halt the divestment plan and rein in officials promoting asset sales and PIA amendments, warning that failure to do so could trigger economic crisis and industrial unrest.

The controversy follows President Tinubu’s directive for reassessment of NNPCL’s management fee and deductions under the PIA, aimed at optimizing government savings amid global financial pressures. However, the unions insist prioritizing long-term national interest over quick fiscal fixes is essential to sustaining Nigeria’s oil industry and economic foundation .